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Negative Gearing Costs Other Aussie Taxpayers $13Bn

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That would be losses due to rental income not covering the mortgage, not the total tax rebate. Once booked against taxes it'll be about a third, lower down in the article is does mention abolishing it would raise about $5B.

It only makes sense if you're a higher rate taxpayer, and can enjoy capital gains. I know people out there who are far from either category, and they still swear blind it's a good idea for them and the lack of rental income doesn't matter. If you probe them they have absolutely no understanding behind why this is (or infact isn't), but their accountant said it was a good idea and that's all they need to know.

I wouldn't be surprised if a vast proportion of those involved are in the same situation.

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I knew it was big - but not how big!

So that's the better part of $600 for every man woman and child. There are about 1.7 million people claiming negative gearing, so about $7700 per person involved.

The actual loss is greater because of the capital tied up in these investments.

Given interest rates etc., this suggests to me that houses are about $200k over priced, which would bring them back to historical levels relative to rent or earnings.

Fecking morons.

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  • 243 Brexit, House prices and Summer 2020

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      • down 5% +
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